1PM PLC Trading Update (1334K)

TIDMOPM

RNS Number : 1334K

1PM PLC

05 July 2017

5 July 2017

1pm plc

(the "Group" or the "Company")

Trading update

Significant increase in revenues and profit driven both by organic growth and by acquisitions.

1pm plc, the AIM listed independent specialist provider of finance facilities to the SME sector is pleased to announce the following trading update ahead of the publication of its final results for the financial year ended 31 May 2017, which are scheduled to be announced during the week commencing 11 September 2017.

The Group has continued to experience strong levels of demand for finance from the SME sector across the growing range of products offered. This range includes asset finance (finance lease and hire purchase) for 'hard' and 'soft' assets, business loans, vehicles broking and, latterly, invoice finance, following the establishment of the Commercial Finance division in May and the recent acquisitions of Gener8 Finance Limited and Positive Cashflow Finance Limited, both of which completed subsequent to the year-end.

The trading results for the year will demonstrate further strong growth in both revenue and profits compared with the prior year. Revenue for the Group will be marginally ahead of market expectations and profit before tax for the Group, after exceptional items, will be in line with market expectations.

Highlights:

   --   Revenue for the year of approximately GBP16.7 million, an increase of 34% 
   --   Profit Before Tax for the year of GBP4.3m, an increase of 28% 
   --   New lease and loan business originated and funded amounted to GBP50.8 million, up 64% 
   --   New lease and loan business originated and 'broked-on' reached GBP17.7 million, up 124% 
   --   'Own-book' asset and loan portfolio as at 31 May 2017 stood at GBP77.5 million, up 17% 
   --   Write-offs in the year continue to be less than 1% of the gross portfolio 
   --   Prudent impairment provision of GBP1.2m, representing 2.0% of net portfolio outstanding 

These trading results reflect significant growth in both the Group's Asset Finance division, comprising the lease portfolios at Onepm Finance, Academy Leasing and Bradgate Business Finance, together with a positive contribution from Bell Finance, acquired on 11 April 2017, and from continued growth in its Loans division, comprising the loan portfolio at Onepm Finance and a positive contribution from Intelligent Financing Limited, acquired on 15 March 2017.

The Group is also pleased to report that operational progress and integration at each of the Group's subsidiaries following their respective acquisitions is in line with management's expectations and consistent with its objectives.

Ian Smith, Chief Executive Officer, commented:

"1pm plc has enjoyed another year of progress and improved results. The figures demonstrate both the anticipated organic growth from our existing Group companies and the expected growth from our strategic acquisitions. It is also encouraging that each of the Group's trading subsidiaries have continued to experience robust levels of demand for finance from across the UK SME sector.

"Our varied and expanding product offering combined with our flexibility to fund and broke-on, plus our focus on excellent customer service, have enabled the Group to deliver these results. Looking ahead, these core elements of our business, when allied to the successful acquisition strategy we have implemented, mean that we are well positioned to build value for our shareholders".

 
 For further information, 
  please contact: 
 
 1pm plc 
 Ian Smith, Chief Executive 
  Officer                                   01225 474230 
 James Roberts, Chief 
  Financial Officer                         01225 474230 
 
 Cenkos (NOMAD) 
 Max Hartley, Harry 
  Pardoe (NOMAD), Julian 
  Morse (Sales)                            0207 397 8900 
 
 Walbrook PR                               0117 985 8989 
 Paul Vann                                  07768 807631 
                                [e-mail] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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July 05, 2017 02:00 ET (06:00 GMT)